I'm self employed. 1040 line 43 shows taxable income from dividends as does line 57, SE tax. Total tax shows just that from line 57. Capital gains taxes are not taxed

[CathiM · Accepted solution]

That does happen, as long as the sum of your ordinary income and LTCG don't exceed the upper income limit ($37,950 for single and $75,900 for MFJ) of the 15% tax bracket your LTCG will be taxed at 0%.  But additional LTCG that puts you into the next tax bracket - 25% - will begin to be taxed at the statutory 15% tax rate.  This calculation is performed on the Qualified Dividends and Capital Gain Tax Worksheet (sometimes called the Schedule D Tax Worksheet).  Look for it when you review your return. It is complicated but it figures the tax that goes Line 44 of your 1040.